Role of Energy Accessibility in Human Development: Evidence from Empirical Analysis of Pakistan
DOI:
https://doi.org/10.29145/eer.91.05Keywords:
clean fuel, energy use, foreign direct investment, human development index, human welfareAbstract
Energy is essential to human advancement since it boosts social growth and production. Numerous studies have demonstrated a long-term correlation concerning energy use and economic expansion, which is frequently gauged by financial metrics. Building on this framework, the current study applied the Autoregressive Distributed Lag (ARDL) approach to explore the long-term association between energy accessibility and human progress in Pakistan for the time period 1998-2020. The results showed that increased admittance to electricity has a long-term positive impression on the Human Development Index (HDI). Likewise, increased use of clean fuels improves household health and living standards, which have a favorable impact on HDI. Additionally, trade openness, employment, and Foreign Direct Investment (FDI) all take positive effects on human development. Based on the results, the study suggested that there is a need for policymakers to increase access to dependable power and encourage the use of clean energy sources as crucial tactics in order to enhance human welfare and attain sustainable development in Pakistan.
Downloads
References
Abbasi, M., Lebrand, M. S. M., Mongoue, A. B., Pongou, R., & Zhang, F. (2022). Roads, electricity, and jobs: Evidence of infrastructure complementarity in Sub-Saharan Africa (Policy Research Working Paper No. 9976). World Bank. https://doi.org/10.1596/1813-9450-9976
Acheampong, A. O., Erdiaw-Kwasie, M. O., & Abunyewah, M. (2021). Does energy accessibility improve human development? Evidence from energy-poor regions. Energy Economics, 96, Article e105165. https://doi.org/10.1016/j.eneco.2021.105165
Adjei-Mantey, K. (2024). On clean energy use: The role of health care facilities in improving clean cooking energy adoption in Ghana. Discover Sustainability, 5(1), Article e479. https://doi.org/10.1007/s43621-024-00741-1
Ajide, F. M., Oladipupo, S. A., Dauda, B. W., & Soyode, E. O. (2025). Analysis of mobile money innovations and energy poverty in Africa. Natural Resources Forum, 2025, Article e70004. https://doi.org/10.1111/1477-8947.70004
Ateba, B. B., Prinsloo, J. J., & Gawlik, R. (2019). The significance of electricity supply sustainability to industrial growth in South Africa. Energy Reports, 5, 1324–1338. https://doi.org/10.1016/j.egyr.2019.09.041
Bano, S., Zhao, Y., Ahmad, A., Wang, S., & Liu, Y. (2018). Identifying the impacts of human capital on carbon emissions in Pakistan. Journal of Cleaner Production, 183, 1082–1092. https://doi.org/10.1016/j.jclepro.2018.02.008
Chowdhury, A. K., & Hossain, M. M. (2025). Exploring the role of renewable energy in enhancing rural livelihoods. Energy, Environment and Economy, 3(1), 1–7. https://doi.org/10.25163/energy.3110328
Djoudji, S. T., & Nguea, S. M. (2025). The role of energy vulnerability in shaping human development outcomes: A multidimensional analysis. Energy Reports, 13, 538–547. https://doi.org/10.1016/j.egyr.2024.12.044
Elom, C. O., Onyeneke, R. U., Ankrah, D. A., Deffor, E. W., Ayerakwa, H. M., & Uwaleke, C. C. (2024). Achieving carbon neutrality in Africa is possible: The impact of education, employment, and renewable energy consumption on carbon emissions. Carbon Research, 3(1), Article 24. https://doi.org/10.1007/s44246-024-00102-7
Engle, R. F., & Granger, C. W. J. (1987). Co-integration and error correction: Representation, estimation, and testing. Econometrica, 55(2), 251–276. https://doi.org/10.2307/1913236
Goldar, B., & Banga, R. (2007). Impact of trade liberalization on foreign direct investment in Indian industries (ARTNeT Working Paper Series No. 36). Asia-Pacific Research and Training Network on Trade. https://hdl.handle.net/10419/178394
Grimm, M., Hartwig, R., & Lay, J. (2013). Electricity access and the performance of micro and small enterprises: Evidence from West Africa. The European Journal of Development Research, 25(5), 815–829. https://doi.org/10.1057/ejdr.2013.16
Hoang, T. T., Wiboonchutikula, P., & Tubtimtong, B. (2010). Does foreign direct investment promote economic growth in Vietnam? ASEAN Economic Bulletin, 27(3), 295–311. https://doi.org/10.1355/ae27-3d
Hoekman, B. M. (2005). Trade and employment: Stylized facts and research findings. Social Science Research Network. https://doi.org/10.2139/ssrn.780467
International Energy Agency. (2020). Defining energy access: 2020 methodology. https://www.iea.org/articles/defining-energy-access-2020-methodology
International Energy Agency. (2021). Global energy review 2021. https://www.iea.org/reports/global-energy-review-2021
Johansen, S. (1991). Estimation and hypothesis testing of cointegration vectors in Gaussian vector autoregressive models. Econometrica, 59(6), 1551–1580. https://doi.org/10.2307/2938278
Johansen, S., & Juselius, K. (1990). Maximum likelihood estimation and inference on cointegration—with applications to the demand for money. Oxford Bulletin of Economics and Statistics, 52(2), 169–210. https://doi.org/10.1111/j.1468-0084.1990.mp52002003.x
Julistia, I., Kurniawan, M., & Hasimi, D. M. (2025). The relationship between education expenditure, health expenditure and final education level towards the human development index from a shariah economic perspective: Evidence from 10 provinces with the lowest HDI in Indonesia. Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi, 9(1), 46–75. https://doi.org/10.31955/mea.v9i1.4871
Komal, R., & Abbas, F. (2015). Linking financial development, economic growth and energy consumption in Pakistan. Renewable and Sustainable Energy Reviews, 44, 211–220. https://doi.org/10.1016/j.rser.2014.12.015
Lee, C. C. (2005). Energy consumption and GDP in developing countries: A cointegrated panel analysis. Energy Economics, 27(3), 415–427. https://doi.org/10.1016/j.eneco.2005.03.003
Li, C., Xia, Y., & Wang, L. (2024). Household unclean fuel use, indoor pollution and self-rated health: Risk assessment of environmental pollution caused by energy poverty from a public health perspective. Environmental Science and Pollution Research, 31(12), 18030–18053. https://doi.org/10.1007/s11356-023-27676-w
Ma, S., Li, S., Luo, Q., Yu, Z., & Wang, Y. (2024). Revisiting the relationships between energy consumption, economic development and urban size: A global perspective using remote sensing data. Heliyon, 10(5), Article e27318. https://doi.org/10.1016/j.heliyon.2024.e27318
Mamidi, V., Marisetty, V. B., & Thomas, E. N. (2021). Clean energy transition and intertemporal socio-economic development: Evidence from an emerging market. Energy Economics, 101, Article 105392. https://doi.org/10.1016/j.eneco.2021.105392
Martinez, D. M., & Ebenhack, B. W. (2008). Understanding the role of energy consumption in human development through the use of saturation phenomena. Energy Policy, 36(4), 1430–1435. https://doi.org/10.1016/j.enpol.2007.12.016
Messerlin, P. (1995). The impact of trade and capital movements on labour: Evidence on the French case. OECD Economic Studies, (24), 89–124.
Minhaj, S. Q., Ahmed, R., & Hai, S. S. (2007). Globalization, foreign direct investment and the human development index: The case of Pakistan [Unpublished Paper]. University of Karachi.
Mohamadi, V., Mozafari Shamsi, H., & Asadi, F. (2019). Investigating the relationship between economic growth, energy consumption and human development in selected MENA countries. Iranian Energy Economics, 8(30), 153–184. https://doi.org/10.22054/jiee.2019.10490
Nussbaumer, P., Bazilian, M., & Patt, A. (2013). A statistical analysis of the link between energy and the Millennium Development Goals. Climate and Development, 5(2), 101–112. https://doi.org/10.1080/17565529.2013.789787
Panigrahi, S. C. (2021). Accessibility of water, electricity, and fuel to the households in India: Evidence from IHDS (2011–2012). In M. Mishra, M. K. Dash, D. K. Upadhyay, & R. K. Kampa (Eds.), Resource efficiency, sustainability, and globalization: Exploring India–European Union cooperation (pp. 117–132). Apple Academic Press.
Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326. https://doi.org/10.1002/jae.616
Quarcoo, A., Mensah, I. A., Omari-Sasu, A. Y., Kunkuaboor, C. Y., & Nouwati, E. (2025). Revisiting the drivers of electricity consumption in designated Sub-Saharan African regions: Unraveling the role of education. Heliyon, 11(1), Article e41345. https://doi.org/10.1016/j.heliyon.2024.e41345
Rahman, M. M., & Alam, K. (2021). The role of access to electricity, female education, and public health expenditure on female health outcomes: Evidence from SAARC-ASEAN countries. BMC Women's Health, 21(1), Article 383. https://doi.org/10.1186/s12905-021-01520-0
Ray, S., Ghosh, B., Bardhan, S., & Bhattacharyya, B. (2016). Studies on the impact of energy quality on human development index. Renewable Energy, 92, 117–126. https://doi.org/10.1016/j.renene.2016.01.061
Ritchie, H., Roser, M., & Rosado, P. (2019). Energy. Our World in Data. https://ourworldindata.org/energy
Saepudin, T. (2018). Development of electricity program, electrification ratio with human development index in West Java Province, Indonesia. International Journal of Energy Economics and Policy, 8(1), 227–230.
Sarkodie, S. A., & Adams, S. (2020). Electricity access, human development index, governance and income inequality in Sub-Saharan Africa. Energy Reports, 6, 455–466. https://doi.org/10.1016/j.egyr.2020.02.009
Sasmaz, M. U., Sakar, E., Yayla, Y. E., & Akkucuk, U. (2020). The relationship between renewable energy and human development in OECD countries: A panel data analysis. Sustainability, 12(18), Article 7450. https://doi.org/10.3390/su12187450
Simionescu, M., Strielkowski, W., & Tvaronavičienė, M. (2020). Renewable energy in final energy consumption and income in the EU-28 countries. Energies, 13(9), Article e2280. https://doi.org/10.3390/en13092280
Singh, R., Wang, X., Mendoza, J. C., & Ackom, E. K. (2015). Electricity (in)accessibility to the urban poor in developing countries. Wiley Interdisciplinary Reviews: Energy and Environment, 4(4), 339–353. https://doi.org/10.1002/wene.148
Škare, M., Tomić, D., & Stjepanović, S. (2020). Energy consumption and green GDP in Europe: A panel cointegration analysis 2008–2016. Acta Montanistica Slovaca, 25(1), 46–56. https://doi.org/10.46544/AMS.v25i1.5
Soytas, U., & Sari, R. (2003). Energy consumption and GDP: Causality relationship in G-7 countries and emerging markets. Energy Economics, 25(1), 33–37. https://doi.org/10.1016/S0140-9883(02)00009-9
Tian, P., Feng, K., Sun, L., Hubacek, K., Malerba, D., Zhong, H., Zheng, H., & Li, J. (2024). Higher total energy costs strain the elderly, especially low-income, across 31 developed countries. Proceedings of the National Academy of Sciences, 121(12), Article e2306771121. https://doi.org/10.1073/pnas.2306771121
United Nations Development Programme. (2022). Human development report 2021/2022: Uncertain times, unsettled lives: Shaping our future in a transforming world. https://hdr.undp.org/content/human-development-report-2021-22
Vera, I., & Langlois, L. (2007). Energy indicators for sustainable development. Energy, 32(6), 875–882. https://doi.org/10.1016/j.energy.2006.08.006
Wolde-Rufael, Y. (2006). Electricity consumption and economic growth: A time series experience for 17 African countries. Energy Policy, 34(10), 1106–1114. https://doi.org/10.1016/j.enpol.2004.10.008
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Sania Ahmad, Sana Butt
This work is licensed under a Creative Commons Attribution 4.0 International License.
EER follow an open-access publishing policy and the full text of all the articles is available free, immediately upon acceptance. Articles are published and distributed under the terms of the Creative Commons Attribution 4.0 International License. Thus, work submitted to EER implies that it is original, unpublished work of the authors; neither published previously nor accepted/under consideration for publication elsewhere. On acceptance of a manuscript for publication, the corresponding author on the behalf of all co-authors of the manuscript will to sign and submit a completed Copyright and Author Consent Form.
The authors will be responsible for any information written/informed/reported in the submitted manuscript. Although we do not require authors to submit the data collection documents and coded sheets used to do quantitative or qualitative analysis, we may request it at any time during the publication process, including after the article has been published. It is the author's responsibility to obtain signed permission from the copyright holder to use and reproduce text, illustrations, tables, etc., published previously in other journals, electronic or print media.
Conflict of interest statements will be published at the end of the article. If no conflict of interest exists, the following sentence will be used: "The authors declare no conflict of interest." Authors are required to disclose any sponsorship or funding received from any institution relating to their research. The editor(s) will determine what disclosures, if any, should be available to the readers.
Authors are not permitted to post the work on any website/blog/forum/board or at any other place, by any means, from the time such work is submitted to UMT journals until the final decision on the paper has been given to them. In case a paper is accepted for publication, the authors may not post the work in its entirety on any website/blog/forum/board or at any other place, by any means, till the paper is published in UMT Journals.
The authors may, however, post the title, author’s names and their affiliations and abstract, with the following statement on the first page of the paper - "The manuscript has been accepted for publication in UMT Journals". After the publication of the article, it may be posted anywhere with full journal citation included and it is encouraged by EER to do relevant efforts for dissemination of research.
All articles published in UMT journals are open-access articles, published and distributed under the terms of the Creative Commons Attribution 4.0 International License, which permits reproduction, distribution, derives and commercial use, provided the original work is properly cited and authors and the publisher is properly identified.
All authors who send their manuscripts to UMT Journals and whose articles are published will retain full copyright of their articles. Notwithstanding this, the author(s) grant UMT Journal(s), its editors, publishers, owners and other persons associated and other users/readers, a license to use the article as described in the License Agreement section below. In the future, UMT may reproduce printed copies of articles in any form. Without prejudice to the terms of the license given below, we reserve the right to reproduce the author's articles in this way.
Licencing Agreement
The EER follows the licensing agreements by Creative Common Attribution 4.0, which indicates that:
Share -copy and redistribute the material in any medium or format
Adapt- remix, transform, and build upon the material for any purpose, even commercially.
Author E-prints
UMT supports a range of author benefit policies with respect to providing authors with an e-print and the opportunity to purchase offprints. E-prints are sent out automatically to the corresponding authors of articles published ahead of print and in print issues. A link is provided allowing the author to download the article directly from the UMT journals website and forward the link onto their co-authors. Please refer to the manuscript submission guidelines for the policy of the journal in which you are interested in submitting or publishing your article.
